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Karen Kane

PO Box 20185, Portland OR 97294

503.789.7217

karen@insurancesolutionsnw.com

"I free small business from the confusing world of insurance"

COBRA and Portability — Be Aware of Time Limits!!

Don’t wait to ask questions. You could miss important deadlines to maintain continuous coverage!

Employers must allow their displaced workers an opportunity to continue their coverage in the company's health coverage. For employers with over 20 employees, a Federal law referred to as COBRA, allows displaced employees to pay premiums for up to 18 months. (Ask your company's HR department for the forms.) For employers with less than 20 employees, Oregon law mandates they must allow former employees the opportunity to pay premiums and stay in the plan for up to nine months.

Federal Stimulus Package - ARRA 2009

If you become unemployed between September 1, 2008 and May 31, 2010, you may have qualified for a subsidy to offset your premium cost for continuing your health coverage under COBRA or State Continuation. As part of the American Recovery and Reinvestment Act of 2009 (ARRA), up to 65% of premiums could be paid by a subsidy and for up to 15 months.

So if you're insuring a family and paying $1,200 a month in premiums the subsidy would bring your payment down to $420 a month. A single employee paying $400 would see a reduced payment of $140 a month. If you've lost your job during the time frame listed above and want to take advantage of the federal subsidy, you should do the following:

• Immediately contact your former employer or health plan administrator and tell them you want to continue your coverage and fill out the required paperwork.
• Ask your employer or health plan administrator where to send the 35% share of the monthly premium. Insurers cannot require people who are eligible for the subsidy to pay 100% of the premium.

If you encounter any problems, call the DCBS Insurance Division's consumer advocates line at 503-947-7984 or toll free at 1-888-877-4894. You can also visit www.dcbs.oregon.gov or www.insurance.oregon.gov

Portability

HIPAA (the Health Insurance Portability and Accountability Act) is a federal law designed to protect you as you transition from an employers group plan to some other coverage. It supports your right to buy insurance coverage and prohibits insurance companies from refusing to cover a health problem you already have ("pre-existing condition"). You must obtain coverage from the same insurance company that provided your employers group plan, unless you are have chronic medical conditions and are covered through the Oregon Medical Insurance Pool. (Click here for details.)

To be eligible for these protections, you must have:

1. had at least 18 months of prior coverage, ending with coverage through a job;
2. used up any COBRA or state continuation coverage rights; and
3. had no gaps in coverage longer than 63 days, so you must act quickly.

If you're confused about your rights and coverage options, simply give us a call at (503) 789-7217 or click here to contact us via email. We're happy to help you sort it all out.